Snam (+3,51%) and Eni (+2,09%) shares fly in Piazza Affari after yesterday's announcement. The Board of Directors of Eni approved the sale to Cassa depositi e prestiti of a 30% stake minus one share in the voting capital of Snam. The consideration for the transaction is approx 3,517 billion, determined on the basis of a price per share of 3,47 euro.
The group led by Paolo Scaroni "responds promptly to the provisions of the decree of the president of the council of ministers of 25 May, which defined the criteria for the sale of Eni's stake in Snam and identified the CDP as the suitable entity to ensure the formation of a stable nucleus in the company's shareholding through the purchase of no less than 25,1% of Snam's capital".
Eni and the CDP have thus reached “a binding preliminary agreement which provides for a fixed price per Snam share of 3,47 euro. The total consideration, equal to approximately 3,517 billion, will be paid by Cassa depositi e prestiti in three tranches. For a total amount of approximately 1,759 billion, the first installment will be paid at the time of the closing, i.e. the transfer of approximately 30% of Snam to CDP, "which can be carried out starting from 15 October next" and "is expected by the end of 2012, provided that certain conditions precedent are met”, including above all the go-ahead from the Antitrust. The second tranche will be due by 31 December 2012, equal to approximately 879 million, and the third by 31 May 2013, equal to approximately 879 million”. From the closing date to the effective payment date, "interest will accrue at market conditions on the amounts of the tranches subsequent to the first".
Through this operation Eni “obtains important resources to allocate to its organic growth in the core business of E&P” and the reduction in debt which will drop below 11 billion. For Eni's residual stake in Snam "the board of directors has taken note of the provisions contained in the decree of the Prime Minister, which provide for the transfer of this share following the transfer to the CDP through transparent and non-discriminatory sales procedures aimed at savers and institutional investors".
